Industry News - Freestar

ICYMI: Ad Tech Edition | Week of September 16th, 2024

Karthikeyan Kumaran — Fri, 20 Sep 2024 17:39:34 +0000

Bits and Bobs from around the industry:

How Google got away with charging publishers more than anyone else

Google’s 20% fee on ad transactions took center stage in its antitrust trial, with the DOJ arguing that the fee highlights Google’s monopoly over online ads. Internal Google emails and testimony revealed executives were concerned about justifying the fee, which was higher than competitors’. However, they maintained it due to Google’s control over a vast advertiser base. The government is attempting to prove that Google tied its publisher ad server to its ad exchange to maintain dominance, despite the company’s defense that publishers benefited from its system. The trial continues with more testimony expected.

The Best Advice At The IAB Connected Commerce Summit: Don’t Annoy Your Customer

The IAB’s Connected Commerce Summit emphasized the importance of understanding consumers in retail media. While expanding ad budgets and improving effectiveness were key themes, many stressed that overuse of retail media could alienate shoppers. Digital out-of-home ads, or “phygital” ads, should enhance the shopping experience rather than disrupt it. IAB research highlighted a disconnect between brands and consumers, with commerce videos seen as intrusive by some shoppers despite advertisers believing them to be effective. The summit concluded that while data is crucial, marketers must rely on intuition and trust to maintain strong consumer relationships.

DOJ vs. Google: Can the digital media industry learn from the last 15 years?

As the Department of Justice prepares to close its case in the Google antitrust trial, evidence from over 30 witnesses and internal documents suggest Google has operated monopolies in ad exchanges, networks, and search. Notable disclosures include discussions by top executives, like YouTube CEO Neal Mohan, about acquiring competitors to limit competition. The case highlights how regulators failed to act on similar monopolistic practices in the past, and critics argue both publishers and advertisers played roles in Google’s dominance. Industry leaders, such as Alessandro De Zanche and Paul Bannister, emphasize learning from these past mistakes, particularly as AI technologies emerge.

Twitch Launches Brand-Customizable Game In Fortnite

Twitch, in collaboration with Amazon Ads, is launching The Glitch, a customizable Fortnite game designed to connect brands with Twitch streamers and gamers. Created by Halo co-creator Alexander Seropian’s Look North World studio, The Glitch allows brands like Domino’s and Peloton to create unique in-game experiences. Domino’s will introduce a pizza-themed health boost, while Peloton will track engagement with non-combative gameplay.

Amazon invites brands to stay in the game for at least one fiscal quarter to maximize engagement with Twitch’s core audience, primarily aged 18-34. Brand activations will also be promoted through Twitch streamers on the platform’s homepage, broadening visibility. The Glitch officially opens to the public on Friday, coinciding with Twitch’s annual convention in San Diego. Amazon Ads plans to bring more brands into the evolving experience, offering new ways for companies to engage with gamers.

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ICYMI: Ad Tech Edition | Week of September 9th, 2024

Caroline Romano — Thu, 12 Sep 2024 00:04:35 +0000

Bits and Bobs from around the industry:

Exclusive: Aditude Acquires Hashtag Labs

Aditude has acquired Hashtag Labs, merging two ad tech firms that support publisher monetization. The deal, which closed on August 16, reflects publishers’ need for efficient revenue solutions amid growing competition. Hashtag Labs, founded in 2014 by John Shankman, will integrate its technology into Aditude’s platform. Shankman will become Aditude’s chief strategy officer. Both companies collectively support over 200 publishers, and all 25 Hashtag Labs employees will join Aditude. Aditude, which raised $15 million last year, plans to expand through more acquisitions while building additional products, including analytics tools for publishers.

Google’s second antitrust trial could help shape the future of online ads

Google is back in court facing a second antitrust trial from the Department of Justice, this time focusing on its advertising business. The DOJ argues that Google’s ad tools monopolize the market, leading to higher ad prices and limiting competition. If the DOJ succeeds, Google could be forced to divest its Google Ad Manager suite. The case follows an August ruling that declared Google a monopolist in internet search. The DOJ claims Google unfairly leveraged acquisitions like DoubleClick, while Google argues its practices promote innovation and competition. The trial could last several weeks.

Unraveling The Mystery Of PubMatic’s $5 Million Loss From A “First-Price Auction Switch”

PubMatic revised its 2024 revenue projections, citing a $5 million shortfall due to Google DV360 shifting to first-price auctions in May. PubMatic had been tagging bid requests as second-price auctions, winning more bids from DV360 as a result. However, DV360’s updated bidding logic affected all SSPs, redistributing PubMatic’s lost revenue to competitors. Despite the industry-wide shift to first-price auctions in 2017, PubMatic continued using second-price auctions, perplexing experts. The revenue didn’t leave the market but was reallocated to other exchanges when DV360 stopped honoring second-price bid requests. PubMatic declined to comment on the discrepancy.

Your Day One Recap: DOJ vs. Google Goes Deep Into The Ad Tech Weeds

The first day of Google’s ad tech antitrust trial in Virginia highlighted the complexities of the ad tech ecosystem. The DOJ argues that Google operates three monopolies in ad servers, ad exchanges, and ad networks, citing Google’s control of 87-91% of the ad server market and its tie between Google Ads demand and AdX. Google’s defense counters that the DOJ’s claims are outdated, asserting that ads span multiple channels, and it only controls 25% of the market. Witnesses from companies like Gannett and Index Exchange testified on Google’s dominance, with debates over header bidding, programmatic advertising, and server switching challenges.

Day 2: Stephanie is being emotional and unproductive

On Day 2 of the Google ad tech antitrust trial, key witness Stephanie Layser, an expert from Amazon and former News Corp exec, testified about Google’s Unified Pricing Rules (UPR) and its monopolistic grip on publishers. She detailed how News Corp’s efforts to switch from Google’s ad server (DFP) were hindered by the loss of AdX demand, and Google’s refusal to share logs for comparison. Layser explained how Google’s “last look” bidding practices and lack of competition control affected publishers’ revenue. Jay Friedman, CEO of Goodway Group, also testified about the ad market’s complexity and Google’s dominance.

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ICYMI: Ad Tech Edition | Week of September 2nd, 2024

Caroline Romano — Fri, 06 Sep 2024 21:21:34 +0000

Bits and Bobs from around the industry:

Exclusive: Aditude Acquires Hashtag Labs

Google’s second antitrust trial could help shape the future of online ads

OpenX CEO John Gentry On Why SSPs Don’t Deserve The Flack They Catch

OpenX CEO John Gentry highlights how SSPs (Supply-Side Platforms) have evolved beyond being “dumb pipes,” investing in data, identity, and sell-side curation. Gentry emphasizes that direct relationships with buyers, clean ad supply, and innovations in CTV (Connected TV) have driven growth. OpenX has differentiated itself by cutting out low-quality CTV inventory and focusing on premium content. Video, including CTV, accounts for 35% of its business, with CTV growing 80% in the first half of the year. While OpenX isn’t currently pursuing acquisitions or an IPO, Gentry remains focused on steady growth.

The Deal With Demand Gen; The Brokerages Might Be Broken

Google’s Demand Gen now attributes all conversions to its campaigns, potentially misrepresenting its performance compared to Meta’s Advantage+ Shopping Campaigns. Consumer data brokers like Acxiom and Experian face criticism for outdated and inaccurate data, unlike more reliable profiles from Amazon and Google. The Trade Desk is developing a new TV OS to compete with Roku and Google TV, aiming to enhance addressable device reach and cross-platform measurement. Additionally, Reddit lacks a formal publisher program but is being tested by publishers, while Twitter investors face losses since Elon Musk’s acquisition. NaNoWriMo’s new AI policy has confused writers, and generative AI is found less effective than humans at summarizing information.

The post ICYMI: Ad Tech Edition | Week of September 2nd, 2024 first appeared on Freestar.

Google’s New Game: Are you a Winner?

The Freestar Team — Thu, 29 Aug 2024 21:25:59 +0000

In August Google released its first Core Update since March.

The most recent Google core update appears to be one of the most positive updates that Google has released, especially for smaller publishers, specializing in user-focused content! Google has stated that,
“This update is designed to continue our work to improve the quality of our search results by showing more content that people find genuinely useful and less content that feels like it was made just to perform well on Search.”

In the last 2 weeks, we have seen numerous publishers experience increases in traffic, demonstrating the positive impact for those who prioritize user experience over search engine algorithms.

To recover from a Google penalty or a significant traffic decline following a core update requires strategic action and can be a lengthy process, often spanning over months. However, core updates present a unique opportunity for recovery as websites are reassessed against the new guidelines. There is a strong reason to believe that the publishers who have invested in creating high-quality, user-centric content will see their sites rise in search rankings during these times.

It’s important to adopt a proactive approach to website optimization rather than passively waiting for updates to change the game. Publishers should have a plan and a strategy that is being reviewed and implemented to ensure their website’s continued success. By implementing these guidelines below, publishers can capitalize on traffic gains and maintain a competitive edge in the ever-evolving search engine landscape.

1. Know your Audience.

Understanding your audience is paramount in creating content that resonates with them and is an essential key step to delving into your audience development strategies. Direct users are the most stable of traffic sources that take pressure off the rise and fall of search engines. This aligns with Google’s EEAT standards enabling you to produce high-quality valuable content that is curated specifically for your audience.

2. Track your Metrics.

Be proactive in investing time in evaluating your Google Analytics (GA4) dashboard to understand what content is performing well and those that are not. Knowing what content is performing better and those that are falling short, you can make data-driven decisions that can make or break your content strategy. Embracing a flexible approach and adjusting your priority based on performance metrics is key to maximizing the website’s traffic.

3. Audit Existing Content

Avoid being hindered by outdated content that no longer meets current-day standards. Refreshing existing or evergreen content can be a relatively efficient way to keep your website content fresh and engaging.. If content is not able to be updated, placing a NoIndex tag can prevent it from being indexed by search engines, thus avoiding potential penalties

4. First-Party Data Strategy

Implementing a strategic approach to obtain your users’ First Party Data is critical to optimizing site revenue and owning your own audience. Gaining a way to target your audience can help with things like newsletters which can gain site traffic, surveys which helps you know your audience, and even integrating additional interactions on the site through voting systems. Furthermore, having FPD allows for optimized revenue through your ad partner (Freestar!) as CPM’s are higher when the ads are curated for the specific user.

By following the above guidelines you can be in a place to be positively impacted when core updates are launched. While optimizing your site remains crucial, it should never come at the detriment of the user experience.

More important than that, by following the above best practices you can improve your site and make the user experience better. You want to be a site that users are coming back to, are typing your site in their browser, have tagged and saved and used in their everyday lives. Google appears to be finally listening to the publishers and there are a lot of positive changes happening. Provide the best, user-first content that you can, and the traffic will follow!

Learn more on how Freestar can efficiently monetize your content while maintaining a positive user experience.

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ICYMI: Ad Tech Edition | Week of March 25th, 2024

Jessica Potter — Fri, 29 Mar 2024 20:34:29 +0000

Bits and Bobs from around the industry:

Media buyers don’t want to pay extra for publishers’ first-party data

Amidst the transition away from third-party cookies, media buyers are cautious about the premiums associated with first-party data and contextual targeting offered by publishers. While some publishers are seeking premiums of around $2, buyers are hesitant due to concerns about overspending on data versus media. Holly Dunn from Havas emphasizes the importance of scrutinizing data privacy and costs. Publishers like Epsilon advocate for value-focused pricing strategies.

However, not all publishers have seen significant increases in CPMs. Buyers are now asking about first-party data earlier in the sales process, but they seek tangible performance improvements before investing heavily in premiums. The future of CPMs depends on evolving cookie alternatives and data accessibility, with winners likely offering high-quality, portable data without restrictive spending requirements.

A Pubmatic Server Anomaly, $1 Billion CPMs, and a Complicated Programmatic Ecosystem

Pubmatic’s $1 billion ad auction glitch, though quickly rectified, reverberated through the programmatic advertising landscape, prompting a deeper examination of its underlying complexities and vulnerabilities. This brief yet impactful server anomaly shed light on the intricate interplay of factors within the programmatic supply chain. While no tangible financial losses occurred, the incident served as a wake-up call for industry stakeholders, highlighting the potential for disruption within an ecosystem reliant on seamless digital transactions.

Experts emphasize the imperative of enhanced collaboration and transparency among players to fortify defenses against future anomalies and ensure the integrity of ad transactions. Moreover, the episode underscores broader concerns regarding power dynamics, intermediary proliferation, and the hegemony of walled garden platforms, prompting calls for more robust regulatory frameworks to safeguard the interests of all parties involved in the programmatic ad ecosystem.

As discussions continue, industry veterans advocate for a concerted effort to address systemic vulnerabilities and establish clearer guidelines to foster fairness, resilience, and trust in the digital advertising sphere.

Sins Of The Cookie: How Third-Party Cookies Set The Industry Back

The third-party cookie, now phased out by Google Chrome, has left a mixed legacy in digital advertising. While it facilitated the growth of programmatic advertising, its shortcomings were significant. Advertisers abused its targeting capabilities, leading to plummeting CPMs, content arbitrage, and misleading attribution practices. Shady data vendors proliferated, offering questionable data quality and privacy violations. Measurement became skewed, relying on flawed attribution models and inflated conversions.

Moving forward, the industry must embrace alternative solutions:

1. Identity Solutions: Probabilistic and authenticated traffic solutions can enhance addressability and attribution.

2. Publisher First-Party Data: Leveraging publisher data for segmentation, particularly in understanding consumer intent, can provide valuable context for advertisers.

3. Advertiser Data Enrichment: Brands can leverage their own data infrastructure to better understand audiences, utilizing identity solutions and co-mingling with publisher data.

4. Retail Media: Collaborating with retailers allows brands to measure advertising impact on actual sales, providing valuable insights into campaign performance.

5. AI-Powered Targeting: Independent AI-driven platforms offer sophisticated targeting algorithms, strengthened by experience and partnership with publishers.

As the industry navigates the post-cookie era, embracing diverse data strategies and innovative technologies can lead to a more sustainable and effective advertising landscape, prioritizing quality, context, and consumer privacy over the limitations of the past.

The post ICYMI: Ad Tech Edition | Week of March 25th, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of March 18th, 2024

Jessica Potter — Fri, 22 Mar 2024 21:41:20 +0000

Bits and Bobs from around the industry:

How Disney Juggles Direct Supply Paths Without Disintermediating SSPs

Disney continues its journey toward automating ad sales with the launch of DRAX Direct, an extension of its real-time ad exchange. This new platform offers advertisers direct access to inventory on Disney+ and Hulu via integrations with The Trade Desk and Google’s DV360. The initiative aims to provide advertisers with increased transparency into available inventory and audience demographics, potentially resulting in higher match rates and better-deduplicated reach.

While Disney maintains partnerships with SSPs like Magnite, DRAX Direct offers advertisers an additional avenue to access inventory, catering to diverse preferences in ad buying. With partnerships extending to over 30 DSPs, including smaller players, Disney seeks to offer advertisers flexibility and efficiency in campaign execution across various platforms and budgets.

Google’s new Sandbox advertising system could be ‘the end for a lot of publishers

As Google prepares to phase out third-party tracking cookies from its Chrome browser, stakeholders closely scrutinize its proposed alternative, the “Privacy Sandbox” ad system, amidst concerns and critiques from publishers, advertisers, and regulatory bodies like the UK Competition & Markets Authority (CMA). The system, developed under legally binding commitments to prevent abuse of Google’s dominant market position, faces skepticism over its effectiveness and fairness. Of particular concern is the Sandbox’s Topics system, which critics argue lacks flexibility and may consolidate Google’s control over ad targeting.

This scrutiny underscores broader anxieties about the future of digital advertising and the balance of power within the ecosystem. Despite Google’s efforts to address these concerns and promote Sandbox as a voluntary framework, doubts persist regarding its potential impact on publisher revenue, data dynamics, and overall market competitiveness. As the digital advertising landscape undergoes significant shifts, stakeholders remain vigilant, advocating for transparency, fairness, and innovation in ad tech solutions.

HOW TO MAKE FIRST-PARTY DATA WORK FOR YOUR BRAND

The Digital Markets Act (DMA), enacted by the European Union today, imposes stringent regulations on six tech giants—Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft—targeting their core platform services (CPS). The DMA aims to disrupt the dominance of Big Tech by introducing measures like banning self-preferencing and mandating data interoperability. While some companies contest their designations, others brace for compliance adjustments. The DMA’s objective is to foster competition and innovation by curbing unfair practices, but its effectiveness depends on user adoption of alternative services. Despite pushback from tech giants, the EU is poised to enforce DMA provisions swiftly, signaling a significant paradigm shift in digital regulation.

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ICYMI: Ad Tech Edition | Week of March 11th, 2024

Jessica Potter — Fri, 15 Mar 2024 20:10:15 +0000

Bits and Bobs from around the industry:

Adalytics Report Torches Ad Tech For Touting MFA Prevention While Scarfing MFA Supply

Ad tech vendors have been vocal about their efforts to combat made-for-advertising (MFA) sites, but a recent report from Adalytics casts doubt on the efficacy of these measures. Despite claims from SSPs and media companies about blocking MFA, the supply chain remains inundated with low-quality inventory. This reveals a systemic issue within the programmatic advertising ecosystem rather than isolated failures of individual companies. While some SSPs have attempted to eliminate MFA, they face challenges as their reach diminishes and CPMs rise without incentivization from the buy side.

Similarly, DSPs continue to serve ads on MFA sites to meet client demands for broader reach and lower costs. Adalytics, renowned for its transparency reports, conducted its analysis using open-source data sets, exposing the prevalence of MFA through the observation of ads served to fake online identities. Major players like Google, Amazon, and Microsoft are called out for their contribution to MFA supply, each employing unique methods that perpetuate the problem. Despite efforts to mitigate MFA, many SSPs and DSPs persist in serving ads on low-quality sites due to incentive structures and the human element. This indicates a broader issue within the industry, where conflicting incentives and a lack of ongoing maintenance perpetuate the proliferation of MFA, undermining the effectiveness of ad tech efforts to combat it.

With AI looming as a threat to news sites, publishers push back

The digital news media landscape has experienced considerable turbulence this year, marked by the closure of publications, widespread layoffs, and the emergence of Generative AI (GenAI) as both a potential threat and a source of innovation for journalists. Amidst these challenges, Google’s decision to phase out third-party cookies from its Chrome browser has sent ripples through the industry, raising concerns about the future of ad revenue for news publishers. This shift has been accompanied by observations of declining search quality, with original content often buried under aggregated links.

However, amidst these disruptions, there are glimmers of hope and resilience. Some publishers are adapting to the changing environment by exploring new avenues for revenue generation and reader engagement. The demise of third-party cookies presents an opportunity for digital publishers to forge more direct relationships with their audience through authentication mechanisms. By requiring readers to log in or sign up for newsletters, publishers can not only authenticate users but also gain valuable insights into their audience demographics and preferences. This shift towards authentication represents a step towards a more transparent and sustainable model for digital journalism.

One example of this proactive approach is exemplified by 404 Media, an independent news publication founded by a group of tech journalists. Recognizing the threat posed by AI-generated content, particularly the unauthorized replication of their articles on other websites, 404 Media implemented authentication measures to safeguard their original reporting. This move not only helps protect the integrity of their journalism but also underscores their commitment to transparency and reader trust.

Similarly, other journalist-owned digital media brands, such as Aftermath, have embraced authentication as a means of strengthening their bond with readers. By encouraging users to log in, these publications foster a sense of community and accountability, reassuring readers that the content they consume is authored by human journalists rather than generated by algorithms.

While authentication offers a promising short-term solution to combat AI-generated content, industry experts emphasize the need for broader, long-term strategies to address the evolving challenges facing digital journalism. James Rosewell, co-founder of the Movement for an Open Web, suggests that larger news publishers can play a pivotal role in negotiating with AI companies to develop technical and legal standards. Additionally, engagement with lawmakers to ensure adequate regulation of AI in the digital market is crucial to safeguarding journalistic integrity.

With the digital news media landscape continuing to face disruptions and uncertainties, there are opportunities for innovation and adaptation. By prioritizing reader engagement, transparency, and collaboration, publishers can navigate the complexities of the evolving digital landscape while upholding the principles of quality journalism.

Europe’s DMA rules for Big Tech explained

The post ICYMI: Ad Tech Edition | Week of March 11th, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of March 4th, 2024

Jessica Potter — Fri, 08 Mar 2024 22:12:55 +0000

Bits and Bobs from around the industry:

Privacy Sandbox’s Latency Issues Will Cost Publishers

The advertising industry faces challenges in testing Google’s Privacy Sandbox for Chrome’s cookie deprecation. The IAB Tech Lab’s Privacy Sandbox Task Force found issues in its case study analysis, and Mediavine’s testing indicates that the Privacy Sandbox’s Protected Audiences API (PAAPI) causes increased latency, reducing viewability and yield. PAAPI results in an average 1500 milliseconds of additional latency, impacting viewability rates, with Google recommending a sequential auction approach that substantially increases latency. Publishers argue for more controls and reporting capabilities within the Privacy Sandbox to address these issues and continue testing effectively. Recommendations for the industry include active testing, sharing results, persistence in testing, and preparing for potential delays in privacy-centric programmatic advertising development. Despite challenges, the industry is encouraged to view the cookie deprecation as an opportunity for improved advertising experiences through rigorous testing.

Microsoft Embraces Google’s Privacy Approach for Advertising

Microsoft has announced its “preliminary support” for Google’s Privacy Sandbox standards, indicating a collaborative effort between the two tech giants to enhance privacy in digital advertising. Microsoft Advertising will integrate these rules into its products to ensure effective ad delivery while prioritizing user privacy. Microsoft had previously developed a similar concept called Parakeet, which has evolved into the Ad Selection API. This tool, incorporated into Microsoft’s Edge browser, enables advertisers to display relevant ads without relying on cookies for user tracking, emphasizing privacy without compromising ad effectiveness. The move signifies Microsoft’s commitment to privacy in online advertising and a willingness to collaborate with Google for industry improvement.

What web creators should know about our March 2024 core update and new spam policies

Google’s March 2024 core update is a comprehensive one, involving changes to multiple core systems and marking an evolution in how the platform identifies the helpfulness of content. The update aims to display more useful results and reduce content created solely to attract clicks. Google has enhanced its core ranking systems, utilizing various innovative signals and approaches, moving away from a reliance on a single signal or system. The rollout of this complex update may take up to a month, with anticipated fluctuations in rankings.

In addition to the core update, Google has introduced new spam policies targeting practices that can negatively impact search results. The three new spam policies address expired domain abuse, scaled content abuse, and site reputation abuse. Violating these policies may result in lower rankings or removal from search results. The March 2024 spam update is launched alongside these policies.

1. Expired Domain Abuse: This occurs when an expired domain name is purchased and repurposed primarily to manipulate search rankings. The goal is to leverage the domain’s past reputation for higher search visibility, even if the new content provides little to no value to users. Google clarifies that using an old domain name for a new, original site designed to serve users is acceptable.

2. Scaled Content Abuse: This involves generating many pages for the primary purpose of manipulating search rankings without providing value to users. It covers the creation of large amounts of unoriginal content, regardless of whether it’s produced through automation, human efforts, or a combination of both. Google aims to take action against scaled content abuse to maintain search result quality.

3. Site Reputation Abuse: This occurs when third-party pages are published with little or no first-party oversight or involvement, intending to manipulate search rankings by exploiting the first-party site’s ranking signals. Google’s new policy does not consider all third-party content as a violation, focusing only on content hosted without close oversight and designed to manipulate search rankings.

To give site owners time to prepare for the changes, the site reputation abuse policy will take effect starting May 5, 2024. Google encourages content creators to review all spam policies and avoid engaging in such practices. The company aims to prioritize helpful content creators in search results over those engaging in spammy practices. The rollout progress and updates can be tracked on Google’s Search Status Dashboard, and feedback can be submitted after the update concludes.

The post ICYMI: Ad Tech Edition | Week of March 4th, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of February26th, 2024

Jessica Potter — Fri, 01 Mar 2024 19:48:26 +0000

Bits and Bobs from around the industry:

Magnite’s CTV Spend Swelled By 20% In 2023

Magnite’s revenue breakdown reveals the increasing significance of connected TV (CTV) for the company, representing almost 40% of its business in Q4 2022. While CTV’s share of revenue grew, the actual revenue from CTV was down 2% YoY in Q4. However, Magnite’s DV+ business, covering various ad formats except CTV, performed well with an 11% YoY increase in revenue. Despite the decline in CTV revenue, the company generated $187 million in Q4, a 7% YoY increase.

The CEO credited Magnite’s strong CTV performance to partnerships with major players like Roku, Warner Bros. Discovery, Paramount, Disney, Samsung, LG, and Vizio. He also highlighted the potential for new advertisers entering the CTV market due to Amazon Prime Video’s shift to an ad-supported model.

In response to questions about third-party cookie deprecation, the CEO expressed confidence in Magnite’s preparedness, citing integrations with alternative identity solutions and full support for Google’s Privacy Sandbox. He emphasized the company’s ability to navigate any potential challenges, even in the face of a decline in CPM, by leveraging volume to maintain revenue levels.

The AdOps Team of the Future

AdOps professionals are actively incorporating generative AI, like ChatGPT, into their workflows to enhance productivity and streamline tasks. These tech-savvy individuals are well-versed in prompt engineering, allowing them to query large language models (LLMs) effectively. AdOps teams use generative AI to manage time more efficiently, automating repetitive tasks such as troubleshooting ad issues, creating HTML templates, and generating reports.

Additionally, AdOps professionals leverage generative AI to enhance their communications, making emails more polished, human-sounding, and empathetic. This use of AI helps individuals and teams present themselves more effectively to clients and colleagues. The interviewees reported using various generative AI tools, including ChatGPT, Gemini, Claud.ai, and Perplexity.ai, each with its subtle differences.

The adoption of generative AI in AdOps is seen as transformative, freeing up time for strategic thinking and allowing teams to focus on revenue growth and product development. The integration of AI tools is expected to continue evolving the AdOps team, enabling them to be more proactive and efficient in their roles.

32 media groups levy $2.3bn antitrust suit against Google over its adtech practices

The coalition of European media organizations filing the €2.1 billion ($2.3 billion) antitrust lawsuit against Google includes prominent names like Krone from Austria, DPG Media and Mediahuis from Belgium, TV2 Danmark A/S from Denmark, Sanoma from Finland, Agora from Poland, Prensa Iberica from Spain, and Ringier from Switzerland. The lawsuit contends that Google’s dominant role in the digital advertising ecosystem has unfairly harmed their publishing businesses, particularly impacting news media during a period when their economic model is already weakened by declining print subscriptions and associated advertising revenue.

Google, in response, rejects the allegations and plans to vigorously defend itself against the lawsuit, emphasizing its collaborative efforts with publishers and its support for their businesses through the adaptation and evolution of its advertising tools. Google’s legal director, Oliver Bethell, referred to the lawsuit as “speculative and opportunistic.”

This legal action in Europe mirrors the scrutiny Google faces in the United States, where the Department of Justice sued the tech giant last year, accusing it of using deceitful and anti-competitive strategies to establish a dominant position in the online search market. The trial for the US case is scheduled for September. The European media coalition hopes to find success in the Netherlands, a jurisdiction with a favorable track record for antitrust cases. Following the news of the lawsuit, Google’s shares experienced a more than 2% dip.

The post ICYMI: Ad Tech Edition | Week of February26th, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of February19th, 2024

Jessica Potter — Fri, 23 Feb 2024 20:32:14 +0000

Bits and Bobs from around the industry:

It’s MFA Freedom Day! Celebrate By Fixing Your Supply Chain

February 24th, designated as Made-for-Advertising (MFA) Freedom Day, symbolizes the point in the year when advertisers cease funding spammy and undesirable MFA sites, based on the ANA Programmatic Media Supply Chain Transparency Study. The study revealed that 15% of ad spend goes to MFA sites, and MFA Freedom Day marks the end of these payments for the year. Advertisers lose an additional 26% on non-viewable, non-measurable, and invalid traffic, totaling a third of their media productivity.

The ANA study emphasized the need for transparency and access to granular log-level data, exposing a $22 billion waste in ad spend. The article suggests five steps for advertisers to enhance transparency and ROI:

Eradicate MFA: Eliminate MFA sites to save money and improve campaign effectiveness.
Ascend the LLD data throne: Demand transparent log-level data access and work with partners providing granular insights.
Benchmark with the best: Participate in ANA transparency benchmark initiatives to measure progress against industry leaders.
Embrace TrueKPIs: Adopt the ANA’s TrueKPI framework for efficient campaigns, moving beyond vanity metrics.
Champion quality journalism: Prioritize quality over price, supporting professional media outlets for long-term brand and performance goals.

By focusing on transparency, data-driven insights, and quality journalism, advertisers can celebrate successful campaigns while avoiding wasted time and resources associated with MFAs.

Amazon wants a bigger slice of the DSP ad tech market

Amazon is actively encouraging advertisers to utilize its demand-side platform (DSP) for programmatic ads beyond its own ecosystem. The company aims to broker deals and partnerships with ad tech vendors, especially supply-side platforms (SSPs), to facilitate easier ad buying in-app and connected TV (CTV) environments. Amazon is making significant investments in these deals, focusing on enhancing the DSP’s capabilities for in-app and CTV advertising. By securing better access to premium inventory, Amazon hopes to attract more advertisers and increase spending on its DSP over time. The company is positioning itself as a dominant force in the programmatic ad space and is actively working on collaborations and upgrades to compete with major DSPs like The Trade Desk and Google’s DV360. Advertisers are being approached to use the Amazon DSP for purchasing ads on Prime Video, with the potential for expanded usage and increased spending.

Google Responds to the IAB Tech Lab’s Scathing Privacy Sandbox Report: “It’s Full of Inaccuracies”

In response to the IAB Tech Lab’s analysis of Google’s Privacy Sandbox, Google has disputed several points, emphasizing that the Privacy Sandbox is not intended as a direct replacement for third-party cookies. Google thanked the IAB Tech Lab for their perspective but criticized the analysis, citing misunderstandings and inaccuracies. The IAB Tech Lab expressed concerns about the challenges associated with Privacy Sandbox, including issues related to essential event-based metrics, brand safety, on-browser computing implications, and a perceived lack of consideration for commercial requirements.

Google clarified that the primary goal of Privacy Sandbox is to enhance user privacy while supporting efficient digital advertising. The Privacy Sandbox APIs are not meant to replace third-party cookies or cross-site identifiers directly. Google acknowledged the need for adaptation and innovation in digital advertising methods to align with privacy goals, emphasizing that this shift requires investment, effort, and collaboration.

The response from Google delves into specific inaccuracies highlighted by the IAB Tech Lab, offering detailed commentary and clarifications across programmatic advertising categories. For example, Google refuted the claim of the “Loss of Runtime Data for Brand Safety,” stating that buyers still receive the page URL in ad requests, and brand safety measures can be implemented during Protected Audience auctions.

Despite the differing perspectives, Google expressed openness to additional feedback from the IAB and the industry to enhance the Topics APIs and address concerns related to the Privacy Sandbox. The response reflects the ongoing industry dialogue and the challenges associated with transitioning to new privacy-focused advertising frameworks.

OpenAI’s Web Search Product Aims to Challenge Google’s Search Supremacy

OpenAI, the developer of ChatGPT, is reportedly working on a web search product in collaboration with Microsoft Bing, positioning itself as a potential competitor to Google’s search engine. While large language models like ChatGPT are powerful, they are not inherently designed for continuous updates, a critical feature for search engines. The move follows previous attempts by alternatives like DuckDuckGo and Neeva to challenge Google’s search supremacy. Despite Bing’s integration of ChatGPT, there hasn’t been a significant shift in audience behavior, with Google maintaining a substantial lead in the search market. Advertisers are advised to consider segmented audiences across platforms, adapting to changing dynamics in the search landscape and the phasing out of cookies. The success of OpenAI’s search interface against Google’s dominance remains uncertain.

The post ICYMI: Ad Tech Edition | Week of February19th, 2024 first appeared on Freestar.